NEW DELHI: The government is going to release the draft of the policy on software products for public consultation soon. The policy, which is aimed at addressing the long-standing issues faced by the software products ecosystem that has always been in the shadows of the software services industry, is currently in the process of being drafted, said a government official.

The long-standing move is also likely to be announced by Union IT and Communications minister Ravi Shankar Prasad during the two-year celebrations of the Narendra Modi government slated later this week.

“The main idea behind the policy is to address the basic issue that India has done so well in the area of IT services but there is a huge market which is yet to be tapped in terms of software products,” said a government official, who did not wish to be identified. The official added that the country has good innovative companies, which have the potential to bring out world class products.

“There are already some companies doing a great job, we have to figure out the way of how to support the ecosystem further in terms of encouragement through incentives and various other measures,” the official said.

The policy is expected to be out for public consultation in the couple of weeks. Over the past 12-18 months, the country has seen a huge number of product companies coming up and the industry could really flourish if the government provides the right support, feel experts.

According to estimates, Indian software product industry index grew 26.6% annually in 2015. And 80% of this growth has come from companies focused on global markets.

Companies like Druva, Freshdesk, Capillary, Nandan Nilekanibacked Team Indus, Forus Health, Julia (an open-source language out of Bengaluru and the MIT) and car firm Savari are some examples of product companies which have made a name for themselves recently. The official said that the policy would address questions on how best the ecosystem can be supported.

IT industry body Nasscom said that it has been a part of the consultation process by the government and has submitted its set of recommendations. Sangeeta Gupta, senior vice-president of Nasscom said, “Our ambition is to have an enabling policy that will allow products to grow from India.

The discussion has been on providing support on multiple levels.” One of the recommendations of Nasscom is on creating a funding ecosystem for product companies apart from the venture capital and angel network by roping in banks and other kinds of financial companies. “Then there is whole theme on taxation, since the Goods and Services Tax (GST) Bill is not yet passed and there are dual levies on software products,” said Gupta.

Separately, RCom initiated contempt proceedings in the apex court against the Department of Telecommunications, blaming it for delaying a spectrum sale that would have enabled dues to be paid to Ericsson and lenders.